[17] Other income statement disclosures

The cost of materials declined by €64,085 thousand in the reporting year to €2,179,984 thousand (2011: €2,244,069 thousand).

Personnel expenses increased by €138,999 thousand in 2012 to €1,202,725 thousand (2011: €1,063,726 thousand). Personnel expenses include wages and salaries of €946,574 thousand (2011: €833,585 thousand) as well as social security contributions and expenses for pensions and other benefits of €256,151 thousand (2011: €230,141 thousand). The interest cost from the unwinding of the discount on estimated pension obligations is not recognised under personnel expenses and is instead reported under financial expense as a component of interest cost of the defined benefit obligation. The pension expense of €33,688 thousand (2011: €29,741 thousand) is essentially comprised of the pension entitlements of €16,243 thousand vested in 2012 (2011: €16,242 thousand) and the unrecognised past service cost of €399 thousand (2011: €177 thousand).

Impairment losses and depreciation expenses on property, plant and equipment together with impairment losses and amortisation expenses on intangible assets amounted to €365,269 thousand in the reporting year (2011: €356,021 thousand). Inventories were written down by €8,167 thousand (2011: €6,179 thousand).

The breakdown of lease and rental payments expensed in the period and related to operating leases where KION Group companies are lessees is as follows:

The expenses in connection with sub-leases relate to leases and rental agreements in which KION Group companies are both lessors and lessees. These expenses were offset by income of €53,639 thousand in 2012 (2011: €51,072 thousand).